Polymarket close to finalizing US$200 million funding round
Blockchain-based prediction market company Polymarket is reportedly close to finalizing a US$200 million funding round that would value the company at more than US$1 billion.
According to Reuters, the round will be led by the venture capital company Founders Fund, created by Peter Thiel, an existing investor. Polymarket has declined to comment.
Founded in 2020 by CEO Shayne Coplan, Polymarket has gained traction by offering event contracts that allow customers to buy and sell shares linked to the outcomes of real-world events, including elections, sports, and global developments. Each share in a contract represents a probability, and the prices for both sides of an outcome add up to US$1.
Polymarket saw a surge in activity during the 2024 US presidential election, notably as its markets predicted a Republican sweep, which ran contrary to the conventional polling. The platform offers contracts on various possible events, including a potential collapse of the Iranian regime and a 2025 US recession.
The platform operates using cryptocurrency and is regulated by the federal Commodity Futures Trading Commission, rather than state-linked sports regulators.
Although Polymarket prevents US residents from using its product, following guidance from the CFTC, the prediction market model has proven highly controversial. Multiple states in the US are engaged in court cases associated with the legality of rival prediction operator Kalshi.
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Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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